Transportation Operations LINCS Practice Exam

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What does the term 'Delivered at Place' signify in INCOTERMS?

The seller is responsible for all risks until delivery
The seller is relieved of responsibilities when goods are available to buyers
The buyer assumes responsibility once payment is made
The seller manages delivery until the buyer collects the goods

The correct answer is: The seller is relieved of responsibilities when goods are available to buyers

The term 'Delivered at Place' (DAP) in INCOTERMS indicates that the seller is responsible for all risks and costs associated with transporting the goods to the specified destination. However, once the goods are made available at that place, the seller's obligations are considered fulfilled. This means that the seller has to cover all expenses and risks up to the point where the goods are delivered and ready for collection by the buyer. At that moment, the seller is relieved of their responsibilities, and the buyer takes over from there. This framework is crucial in international trade as it delineates the liabilities of the buyer and seller clearly. The seller must ensure the goods are transported safely and arranged for delivery, but their responsibility ceases when the goods reach the agreed-upon location and are ready for the buyer, thereby confirming choice B captures the essence of the DAP term effectively.